JAMB and WAEC Commerce questions

611 questions with answers and explanations. Tap an option to check yourself.

1. Question 261· Financing a business· JAMB

   Working capital is calculated as

   • Acapital minus drawings
   • Bfixed assets plus current assets
   • Ccurrent assets minus current liabilities
   • Dsales minus cost of sales

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   Explanation and discussion

2. Question 262· Financing a business· WAEC

   Capital employed is

   • Aturnover
   • Bcurrent assets only
   • Ccash in hand
   • Dtotal assets minus current liabilities

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   Explanation and discussion

3. Question 263· Financing a business· JAMB

   Trade credit is a source of finance in which

   • Ashares are sold
   • Bbanks give overdrafts
   • Csuppliers allow goods to be paid for later
   • Dgovernment gives grants

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   Explanation and discussion

4. Question 264· Financing a business· JAMB

   A trader's capital is ₦600,000 and liabilities are ₦150,000. Total assets are

   • A₦450,000
   • B₦750,000
   • C₦600,000
   • D₦150,000

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5. Question 265· Financing a business· JAMB

   Leasing allows a firm to

   • Aown an asset at once
   • Buse an asset by paying rent without buying it
   • Csell shares
   • Dborrow from friends

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   Explanation and discussion

6. Question 266· Financing a business· JAMB

   Gross profit is ₦150,000 on sales of ₦600,000. Find the gross profit margin.

   • A4%
   • B15%
   • C40%
   • D25%

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7. Question 267· Financing a business· WAEC

   A source of long-term finance for a company is

   • Aa bank overdraft
   • Bissuing shares or debentures
   • Ctrade credit
   • Daccrued expenses

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8. Question 268· Financing a business· JAMB

   A business has current assets of ₦300,000 and current liabilities of ₦150,000. Its current ratio is

   • A₦450,000
   • B1 : 2
   • C2 : 1
   • D₦150,000

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9. Question 269· Financing a business· JAMB

   A trader's opening stock is ₦20,000, closing stock ₦30,000 and cost of goods sold ₦100,000. The rate of turnover is

   • A4 times
   • B5 times
   • C3.3 times
   • D10 times

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   Explanation and discussion

10. Question 270· Financing a business· JAMB

    Cost of sales is ₦240,000 and average stock is ₦40,000. Find the rate of stock turnover.

    • A6 times
    • B4 times
    • C10 times
    • D9,600 times

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    Explanation and discussion

11. Question 271· Financing a business· JAMB

    Ploughing back profit into the business is a source of

    • Aexternal finance
    • Binternal finance
    • Cshort-term borrowing
    • Dtrade credit

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    Explanation and discussion

12. Question 272· Financing a business· WAEC

    Ordinary shareholders receive

    • Adividends that vary with profit
    • Bfixed interest
    • Cno voting rights
    • Dguaranteed returns

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    Explanation and discussion

13. Question 273· Financing a business· WAEC

    Which of these is NOT a short-term source of finance for a business?

    • Aaccrued expenses
    • Bbank overdraft
    • Ctrade credit
    • Dissue of ordinary shares

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    Explanation and discussion

14. Question 274· Financing a business· JAMB

    Venture capital is provided mainly to

    • Agovernment ministries
    • Bnew or risky businesses with growth potential
    • Cpensioners
    • Dthe Central Bank

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    Explanation and discussion

15. Question 275· Financing a business· WAEC

    A business has current assets of ₦80,000 and current liabilities of ₦50,000. Its working capital is

    • A₦80,000
    • B₦130,000
    • C₦50,000
    • D₦30,000

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16. Question 276· Financing a business· WAEC

    Capital that a business uses for its day-to-day operations is

    • Aauthorised capital
    • Bfixed capital
    • Cworking capital
    • Dcalled-up capital

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17. Question 277· Financing a business· JAMB

    Which of the following is a source of long-term finance for a company?

    • ABank overdraft
    • BIssue of debentures
    • CTrade credit
    • DHire purchase of stationery

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18. Question 278· Financing a business· WAEC

    Ploughing back profit means

    • Aborrowing from banks
    • Bpaying all profit as dividends
    • Cusing retained profit to finance the business
    • Dselling shares

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19. Question 279· Financing a business· WAEC

    A firm has current assets of ₦800,000 and current liabilities of ₦500,000. Its working capital is

    • A₦800,000
    • B₦1,300,000
    • C₦500,000
    • D₦300,000

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20. Question 280· Financing a business· WAEC

    A trader's capital is ₦500,000, and he earns a net profit of ₦75,000. His return on capital is

    • A75%
    • B7.5%
    • C20%
    • D15%

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    Explanation and discussion